The Tennessee Department of Commerce and Insurance is warning consumers about a growing scam targeting people selling vehicles on Facebook Marketplace. Scammers pose as interested buyers, negotiate a price for the car, and sometimes even involve the seller’s bank in the conversation to build trust. They then provide what appears to be payment using either a phony wire transfer or a fake cashier’s check. Once the seller believes the funds have been received and the deal is complete, they hand over the vehicle—sometimes meeting the buyer in person. Days later, the seller discovers the payment is worthless: the cashier’s check bounces or the wire transfer is reversed. By that point, the car is gone, and most insurance companies will not cover the loss because it occurred through fraud rather than traditional theft.

To protect themselves, the department offers several key recommendations. When receiving a cashier’s check, sellers should call the issuing bank directly to verify its validity. A strong sign of legitimacy is if the buyer agrees to meet at their bank to have the check issued in person or allows the seller to do the same. For wire transfers, which are riskier, sellers should ideally wait two business days to confirm the funds have fully cleared before releasing the vehicle. Alternatively, have the wire sent directly to the seller’s bank account so they can verify the money is available and use it to pay off any auto loan before handing over the keys.

Additional precautions include running a National Motor Vehicle Title Information System (NMVTIS) report and a CARFAX report to check the car’s true history and title status. If a seller claims the vehicle has an out-of-state title but NMVTIS shows it is registered in Tennessee or has no matching history, the title may be fake. Finally, the Tennessee Motor Vehicle Commission strongly recommends buying or selling vehicles through licensed motor vehicle dealers or salespersons whenever possible to minimize risk.